You are paid $8.35/hr at your part-time job. Your deductions are FICA (7.65%), federal tax withholding (9.15%), and state tax withholding (7.5%). Your travel expenses are $6.30 per day worked. You work 16 hours over a 4-day period of time. What is your net income after travel expenses?

Answer 1

First, calculate the total earnings before deductions:
Total earnings = $8.35/hr * 16 hours = $133.60

Next, calculate the total deductions:
FICA = 7.65% of $133.60 = 0.0765 * $133.60 = $10.23
Federal tax withholding = 9.15% of $133.60 = 0.0915 * $133.60 = $12.23
State tax withholding = 7.5% of $133.60 = 0.075 * $133.60 = $10.02

Total deductions = $10.23 + $12.23 + $10.02 = $32.48

Calculate the net income after deductions:
Net income = Total earnings - Total deductions = $133.60 - $32.48 = $101.12

Subtract the travel expenses:
Net income after travel expenses = $101.12 - ($6.30 * 4) = $101.12 - $25.20 = $75.92

Therefore, your net income after travel expenses for working 16 hours over a 4-day period is $75.92.